Next Level warns

Also: Retailers report sales and give outlooks

By

BarbaraC. Costanza

Earnings advisories

After the market closed Thursday, Next Level Communications
NXTV
warned that it would miss the current consensus estimate. The company expects a fourth-quarter loss of 22 cents a share, while analysts had been expecting a loss of about 12 cents a share. Revenue will be about $150 million. The company cited reduced revenue from Qwest and slower than anticipated customer development in Korea. Shares fell 13 cents to close at $10.81. See full story.

ClickSoftware
CKSW
said it expects a fourth-quarter loss of 20 cents a share, on revenue of about $3.1 million. Analysts polled by First Call currently expect a loss of about 6 cents a share. "During the last several days of the quarter, several companies which were in contract negotiations to purchase ClickSoftware's products decided to defer their purchasing decisions," said Moshe BenBassat, chairman and chief executive officer. The stock rose 22 cents to close at $2.06.

Brooktrout
BRKT
said it expects fourth-quarter earnings between 3 cents to 5 cents a share, while analysts had been expecting a profit of 31 cents a share. The company cited a general slowdown in the telecommunications equipment market, as well as the lower than expected performance from its software division. Shares rose $1 to $10.88.

Delano Technology
DTEC, -1.42%
said it expects third-quarter losses of $11.75 million to $12.25 million, or 33 cents to 35 cents a share, on revenue of $9.3 million. Three analysts surveyed by First Call expected losses of between 22 cents and 28 cents a share. According to a company statement, the company is sticking with its original timeline of profitability by the fourth quarter of 2001 and that it will have the cash to make it there. The Toronto-based company plans on asking for a dual listing on the Toronto Stock Exchange next week. Shares closed down 6 cents to $4.75.

Sapient said it expects fourth-quarter revenue of $139 million and the consulting company forecasts a per-share profit of 10 cents, 2 cents shy of Wall Street's target. The company said slower spending from both large clients and dot-com firms has hurt the quarter. Revenue will miss estimates by $4 million. Cambridge, Mass.-based Sapient
SAPE
shares closed up 38 cents to $15.06.

B2B health-care services company EBenX
EBNX
said it's comfortable with fourth-quarter consensus revenue and earnings estimates, but not for the first half of 2001. Analysts polled by First Call currently expect a fourth-quarter loss of 8 cents a share. However, EbenX said its 2000 enrollment commitment number, at 855,000, is below its target of 900,000 to 1 million. Because of this, 2001 financial results will be hurt during the first half of the year. EbenX said it is still committed to achieving profitability in the fourth quarter of 2001. Shares fell 13 cents to close at $7.25.

After the market closed, Keynote Systems
KEYN
warned of a revenue shortfall in the first quarter but said it will meet the consensus estimate for the quarter. The company anticipates revenue of $13 million to $13.2 million, down compared with the previous expectation of $14 million to $14.5 million. Revenue fell as a result in reductions in subscription revenue. Shares closed down 69 cents to $16.94.

Shares of RMH Teleservices
RMHT
plunged 50 percent after the company said its fiscal first quarter would miss the consensus estimate due to a major customer and higher expenses. The company expects a net loss of $3.2 million, or 39 cents a share, for the first quarter. Analysts polled by First Call expected a profit of 8 cents a share. Shares closed down $3.50 to $3.50.

Dynegy Inc.
DYN, -2.34%
said it expects to "significantly" exceed previously forecast fourth-quarter earnings of 22 cents to 25 cents a share. Analysts currently expect a profit of 25 cents a share. The company also reaffirmed that it is comfortable with the upper range of current estimates for 2001. The stock fell $3.13 to close at $45.63.

Shares of Read-Rite Corp.
RDRT
soared 33 percent after the company made positive comments about its first quarter. The magnetic recording heads manufacturer expects a 30 percent increase in revenue to over $189 million, compared with the previous quarter's total of $145.9 million. "The company will return to profitability this quarter and will exceed the industry estimates regarding earnings per share," said Alan S. Lowe, president and chief executive officer. Analysts polled by First Call currently expect a profit of 2 cents a share for the first quarter. Shares rose $1.47 to $5.97.

Vitria Technology
VITR, +1.57%
said it expects to post a loss between a penny to 3 cents a share in the fourth quarter. Analysts polled by First Call were expecting a profit of a penny a share. The e-business platform provider blamed canceled customer orders in the last few days of the quarter for the projected shortfall. Quarterly sales are seen in the range of $39 million to $41 million. The Sunnyvale, Calif.-based company saw its shares plunge $4.03, or 50 percent, to $3.97. See full story.

Watchguard Technologies
WGRD, +0.00%
said fourth-quarter revenue would miss Wall Street expectations but it still expects to meet analyst targets for earnings per share. The company expects revenue of $19.5 million to $20 million, just shy of its previous target of $20.6 million. Pro forma earnings are forecast at 2 cents to 4 cents a share, in line with the average estimate of analysts polled by First Call for a profit of 3 cents a share. The shares fell $7.02 to trade at $13.06. See full story.

Shares of shoe retailer Footstar Inc.
FTS, -0.15%
fell 13 percent after the company warned of a fourth-quarter shortfall. The company expects earnings between 90 cents to 93 cents a share, while analysts currently expect a profit of $1.06 a share. Full-year earnings for 2000 will be between $3 and $3.03 a share, while analysts had been expecting a profit of $3.14 a share. Sales in the company's athletic segment fell short of expectations due to lower than anticipated results in apparel and accessories. In addition, the company's off-mall Just For Feet locations didn't benefit from the surge in pre-Christmas traffic experienced by other retailers. The stock fell $6.38 to trade at $43.19.

Apparel retailer Abercrombie & Fitch Co.
ANF, +0.71%
said that its fourth-quarter earnings will be in the range of 73 cents to 75 cents a share. Analysts polled by First Call currently expect a profit of 82 cents a share. The company cited a tough retail environment, with December same-store sales down 11 percent compared with a 1 percent increase in sales for December 1999. The stock rose $2.50 to $22.75.

Ann Taylor Stores Corp.
ANN, -1.16%
said fourth-quarter earnings will be in the lower range of 38 cents to 42 cents a share. Analysts polled by First Call currently expect a profit of 45 cents a share. Fourth-quarter same-store sales will also be in the low, negative single digits. The women's apparel retailer cited pricing markdowns and bad weather. Shares traded down 31 cents to $28.

Discount apparel retailer TJX Companies
TJX, -0.02%
said that, due to lower-than-planned sales and markdowns, the company's fourth-quarter earnings will be about 46 cents a share. That would miss the current estimate on Wall Street of a profit of 49 cents a share. The stock fell 25 cents to trade at $29.44.

Children's Place
PLCE, +0.83%
said it expects fourth-quarter earnings of 55 cents to 60 cents a share, including a charge of 4 cents a share. Analysts polled by First Call were looking for a profit of 69 cents a share. The company blamed the shortfall on its weak sales performance in December, which saw same-store sales diminish 6 percent in spite of a 20 percent increase in total sales for the five weeks. The shares lost $1.94 to trade at $17.63.

Talbot's
TLB, -5.41%
said it expects fourth-quarter earnings of 46 cents to 48 cents a share, which would beat the current Wall Street expectations for a profit of 43 cents a share. The company cited strong sales in November and December. The shares traded up $2.31 to $51.56.

Tiffany & Co.
TIF, +0.63%
warned of a fourth-quarter earnings shortfall on weaker-than-expected holiday sales. The company said its expects flat fourth-quarter earnings of about 56 cents a share. Currently Wall Street is expecting earnings of 64 cents per share, according to a survey of analysts by First Call. The luxury retailer said net sales of $482.5 million for holiday season were 2 percent higher than $474.2 million in 1999. The company is eyeing 10 to 15 percent earnings growth in 2001. The shares fell $6.44 to $30.69.

Park Place Entertainment
PPE, +2.48%
said it expects to report break-even results in the fourth-quarter, well below the consensus analyst estimate compiled by First Call of a 12-cent profit. The gaming company blamed the shortfall on the bad weather that reduced visitation at certain properties in December and to the competitive environment in Mississippi. The stock lost $1.94 to $10. See full story.

The Limited
LTD, -4.37%
told investors that it expects fourth-quarter earnings of 53 cents to 57 cents, citing disappointing holiday sales numbers. That would miss the current consensus estimate on Wall Street of a profit of 70 cents a share. Same-store sales for the five weeks ending Dec. 30 were flat compared with the same period last year. Total sales for the period were about $1.9 billion, up 2 percent over last year. The stock lost $2 to trade at $15.94.

Intimate Brands
IBI, -3.74%
which is 84 percent owned by The Limited, said it sees earnings of 44 cents to 48 cents in its fourth-quarter, compared with the consensus estimate of 59 cents a share. The retailer said same-store sales fell 3 percent in December. LTD. Shares fell 88 cents to trade at $14.88.

Gadzooks
GADZ
said it expects to meet or beat Wall Street expectations for a fourth-quarter profit of 64 cents a share. December same-store sales rose 0.3 percent. Total sales for the five weeks ended Dec. 30 rose 16.6 percent to $51.9 million from $44.5 million in the same period a year earlier. The shares fell 13 cents to trade at $15.88.

InSilicon
INSN
said it would report lower-than-expected first-quarter revenue of $6 million due to the delay of several customer license contracts at the end of the quarter. As a result, the company anticipates reporting earnings of between 2 cents and 4 cents a share for the period, compared with the consensus estimate on Wall Street of a 6-cent profit. Shares fell $2 to close at $5.50.

Gap
GPS, +1.54%
said same-store sales fell 6 percent, vs. a 5 percent increase in the year-ago period, during the five-week holiday shopping season this year. The company said there's a "downside risk" of a shortfall of 3 cents to 5 cents a share in its fourth-quarter earnings report due on March 1. Gap pointed out that the current Wall Street consensus estimate of 36 cents per share is still "achievable." The retailer cited the prospect of "an even more aggressive promotional environment" as a threat to meeting current earnings forecast. The shares traded down 81 cents to close at $29.50. See full story.

Daleen Technologies
DALN
said it expects to report a loss of 54 cents to 64 cents a share on revenue of $9 million to $10 million in the fourth quarter. Analysts polled by First Call currently expect a loss of 31 cents a share for the quarter. The company cited a slowdown in capital spending in the telecom industry, which has led to delays in key contracts. The shares traded down $1.81, or 43 percent, to $2.38.

Dollar Tree Stores
DLTR, -1.23%
said it expects fourth-quarter earnings to miss Wall Street expectations. Analysts polled by First Call were looking for a profit of 60 cents a share. Fourth-quarter same-store sales rose 2 percent. Total sales for the latest three months rose 18.3 percent to $599.2 million from $506.7 million in the same period a year earlier. The company said sales were hurt by the sluggish retail environment and severe weather conditions. The shares traded down $3.06 to $22.

A.C. Moore
ACMR, -8.12%
said it expects fourth-quarter earnings of 85 cents to 87 cents a share, which would miss the average estimate of analysts polled by First Call of a 91-cent profit. Same-store sales for the fourth quarter fell 0.5 percent. Total sales for the fourth-quarter rose 17.7 percent to $93.2 million from $79.2 million in the same period a year earlier. The stock rose 6 cents to $8.56.

Shares of BMC Software
BMCS, +9.52%
rose 43 percent as a result of the company's positive outlook for the third quarter. The company said it expects third-quarter earnings of 20 cents to 22 cents. Analysts currently expect a profit of 16 cents a share, according to First Call. Shares shot up $6.69 to $22.31.

Inktomi
INKT
warned investors that it expects to report break-even to a 1-cent profit in the first quarter, while the 24 analysts polled by First Call expect a profit of 3 cents. Revenue will be in the range of $80 million to $81 million, an increase of 121 to 124 percent compared with last year. "The current conditions in the U.S. capital markets and the broader economy have resulted in a slowdown in infrastructure spending," said David Peterschmidt, president and chief executive officer. The company develops infrastructure software. Shares lost $4.63 to $13.88.

Telecommunications services McLeodUSA Inc.
MCLD, +8.96%
reiterated that it expects to meet or exceed the average current consensus estimate for the fourth quarter and year-end 2000. Analysts polled by First Call expect a loss of 26 cents for the fourth quarter and loss of 91 cents for the year. Shares rose $3.13 to $19.88.

Resonate
RSNT
said it expect a loss of 25 cents to 28 cents for the fourth quarter, while analysts currently expect a loss of 26 cents a share. Revenue will be between $5.1 million to $5.4 million. The stock fell $7.50, or 67 percent, to $3.75.

Positive surprises

Bear Stearns & Co.
BSC, +1.30%
reported fourth-quarter earnings of $195.2 million, or $1.36 a share, down from last year's profit of $207.5 million, or $1.32 a share, but well ahead of the average estimate of analysts polled by First Call for a profit of $1.11 a share. Revenue rose 7.5 percent to $1.38 billion from $1.28 billion in the same period a year earlier. Shares rose $1.56 to $55.50.

Lehman Brothers
LEH
reported fourth-quarter earnings of $399 million, or $1.46 a share, up from last year's profit of $301 million, or $1.14 a share, and ahead of the average estimate of analysts polled by First Call for earnings of $1.26 a share. Shares rose 94 cents to $77.06.

Tenet Health Care
THC, +2.03%
reported second-quarter earnings $175 million, or 54 cents a share, compared with last year's profit of $135 million, or 43 cents a share. Analysts polled by First Call expected a profit of 50 cents a share. Excluding acquisition-related goodwill charges, net income for the latest quarter totaled $196 million, or 60 cents a share. Tenet also said it expects 2001 earnings to come in 20 percent above 2000 earnings of $1.81 a share. The stock fell $2.44 to $39.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.